FORM 10-Q/A
AMENDMENT #1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED: March 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM N/A to N/A
COMMISSION FILE NUMBER: 0-26790
INNOVUS CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 87-0461856
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
2060 East 2100 South
SALT LAKE CITY, UTAH 84109
(Address of principal executive offices)
(801) 463-8200
(Issuer's telephone number)
Check whether the registrant (1) has filed all reports required to be filed
by Sections 13 or 15(d) of the Exchange Act during the preceding 12 months
(or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past
90 days.
YES X NO
The number of common shares outstanding at May 13, 1997: 6,009,646
Innovus Corporation and Subsidiary
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1997 1996
CURRENT ASSETS
Cash and cash equivalents $ 1,039,818 $ 886,122
Accounts receivable, net 267,143 116,761
Inventories 101,388 39,003
Prepaid expenses 93,900 119,849
Total current assets 1,502,249 1,161,735
PROPERTY AND EQUIPMENT, net 1,304,457 1,341,175
OTHER ASSETS
Software development costs, net 983,575 809,824
Other 18,871 30,442
1,002,446 840,266
TOTAL ASSETS $ 3,809,152 $ 3,343,176
See the accompanying notes to condensed consolidated financial statements.
Innovus Corporation and Subsidiary
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, December 31,
1997 1996
CURRENT LIABILITIES
Accounts payable $ 377,951 $ 716,068
Accrued compensation 138,801 216,805
Accrued liabilities 138,432 126,022
Current maturities of long-term debt 285,617 28,477
Current maturities of capital
lease obligations 27,960 37,220
Total current liabilities 968,761 1,124,592
LONG-TERM DEBT,
less current maturities 671,564 671,564
CAPITAL LEASE OBLIGATIONS,
less current maturities 56,991 56,991
Total liabilities 1,697,316 1,853,147
COMMITMENTS
STOCKHOLDERS' EQUITY
Preferred stock - $0.001 par value;
1,000,000 shares authorized; 87,900
and 87,100 shares issued and outstanding,
respectively 88 87
Common stock - $0.001 par value;
15,000,000 shares authorized; 5,882,252
and 5,052,811 shares issued and
outstanding, respectively 5,882 5,053
Additional paid-in capital 16,888,017 14,996,682
Deferred compensation (10,905) (14,486)
Accumulated deficit (14,771,246) (13,497,307)
Total stockholders' equity 2,111,836 1,490,029
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 3,809,152 $ 3,343,176
See the accompanying notes to condensed consolidated financial statements.
Innovus Corporation and Subsidiary
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months
Ended March 31,
1997 1996
Net sales $ 273,474 $ 56,462
Costs and operating expenses
Costs of products and services sold 93,578 19,023
Amortization of software
development costs 257,120 76,698
Product development - 364,839
Selling and marketing 569,329 904,512
General and administrative 226,780 206,778
1,146,807 1,571,850
Operating loss (873,333) (1,515,388)
Other income (expense)
Interest income 8,320 17,283
Other income 6,642 -
Interest expense for warrants
issued with debt (349,607) -
Interest expense, other (34,856) (22,747)
(369,501) (5,464)
Net Loss (1,242,834) (1,520,852)
Dividends on preferred stock (115,242) -
Loss Applicable to
Common Shareholders $ (1,358,076) $ -
Loss per common share $ (0.25) $ (0.32)
Weighted number of shares of
common stock used in per
share calculation 5,479,956 4,691,037
See the accompanying notes to condensed consolidated financial statements.
Innovus Corporation and Subsidiary
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Three Months
Ended March 31,
1997 1996
Increase (decrease) in cash and cash equivalents
Cash flows from operating activities
Net loss $ (1,242,834) $ (1,520,852)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization 306,597 117,827
Expenses for issued warrants 349,607 -
Changes in assets and liabilities:
Accounts receivable (150,382) (26,258)
Inventories (62,385) (36,114)
Accounts payable and
accrued expenses (403,711) 192,870
Other 39,320 8,480
Net cash used in
operating activities (1,163,788) (1,264,047)
Cash flows from investing activities
Acquisition of property and equipment (10,978) (49,893)
Increase in software development costs (430,871) (184,794)
Net cash used in
investing activities (441,849) (234,687)
Cash flows from financing activities
Payments to reduce long-term debt
and capital lease obligations (101,727) (8,307)
Net proceeds from issuance of preferred
and common stock 1,861,060 -
Net cash provided by (used in)
financing activities 1,759,333 (8,307)
Net increase (decrease) in cash and
cash equivalents 153,696 (1,507,041)
Cash and cash equivalents at
beginning of year 886,122 2,362,556
Cash and cash equivalents at
end of year $ 1,039,818 $ 855,515
Supplemental Cash Flow Information:
Interest paid $ 28,205 $ 23,009
See the accompanying notes to condensed consolidated financial statements.
(Unaudited)
NOTE A - INTERIM FINANCIAL STATEMENTS
In the opinion of management, the accompanying unaudited financial
statements contain all necessary adjustments, consisting of normal
recurring adjustments except as disclosed herein for a fair presentation
of financial position and the results of operations. The results of
operations of the interim periods presented are not necessarily indicative
of the results to be expected for the remainder of 1997.
The accompanying unaudited financial statements have been condensed
pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and disclosures normally included in
financial statements have been condensed or omitted. These financial
statements should be read in connection with the Company's annual financial
statements included in the Company's annual report on Form 10-K, as of
December 31, 1996.
NOTE B - PROPERTY AND EQUIPMENT
Property and equipment and estimated useful lives consist of the following:
March 31, December 31,
Years 1997 1996
Building 40 $ 422,231 $ 422,231
Computer and office
equipment 5-7 909,977 907,499
Furniture and fixtures 5-7 115,859 115,859
1,448,067 1,445,589
Less accumulated depreciation
and amortization (518,041) (478,845)
930,026 966,744
Land 374,431 374,431
$ 1,304,457 $ 1,341,175
NOTE C - ISSUANCE OF PREFERRED STOCK
In February 1997, the Company designated 70,000 shares of preferred stock as
Series F and issued 40,000 of such shares for $2,000,000.
The Series F preferred stock is convertible at a rate of $2 per common
share. Dividends on any Series F preferred stock converted during the
first year following original issuance accrue at 10% per annum. Dividends
on any Series F preferred stock converted following the first year accrue
at 15% per annum for the first year and 5% per annum thereafter. All
dividends on the Series F preferred stock are payable in cash or common
stock (at $2 per share) at the time of conversion. If the market price
for the common stock is not at least $3 per share on February 15, 1998,
the conversion rate for all Series F preferred stock then still outstanding
will be adjusted so that each preferred share (including accrued dividends)
will be convertible into common stock having a market value equal to 150%
of the original purchase price of $50.
Also in February 1997, the Company designated 12,000 shares of preferred
stock as Series G. This series will be issued only in exchange for shares
for the Company's Series E preferred stock.
The Series G preferred stock is convertible at a rate of $2.25 per common
share. Dividends on any Series G preferred stock converted during the
first year following original issuance accrue at 10% per annum. Dividends
on any Series G preferred stock converted following the first year accrue
at 15% per annum for the first year and 5% per annum thereafter. All
dividends on the series G preferred stock are payable in cash or common
stock (at $2.25 per share) at the time of conversion.
NOTE D - CONVERSION OF PREFERRED STOCK
During the three months ended March 31, 1997, preferred stockholders
converted 22,100 shares of Series C and 17,100 shares of Series D preferred
stock into 707,622 shares of common stock in several transactions at an
average price of $2.73 per share. Also, $31,105 in dividends associated
with the Series C and Series D preferred stock were converted into 11,126
shares of common stock.
NOTE E - ISSUANCE OF OPTIONS
During January 1997, the Company granted to an officer/director an option
to purchase 200,000 common shares at $2.50 per share. The option vests 50%
immediately, an additional 25% at the end of year one and the final 25% at
the end of year two. The options expire in five years. The exercise price
$2.50 was the fair market value of the underlying stock on the date granted.
NOTE F - OTHER CAPITAL TRANSACTIONS
During February 1997, 49,527 shares of common stock were issued upon exercise
of stock options for $25,160, by terminated employees. Additionally, 345,399
stock options held by terminated employees were forfeited.
NOTE G - EARNINGS PER SHARE
In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standard (SFAS) No. 128, "Earnings per Share". The
statement is effective for financial statements for periods ending after
December 15, 1997, and changes the method in which earnings per share will be
determined. Adoption of this statement by the Company will not have a
material impact on earnings per share.
NOTE H - SOFTWARE DEVELOPMENT COSTS
The Company has restated its financial statments for the quarter ended
March 31, 1997 to capitalize previously expensed product development
costs to more accurately reflect the activities of the product
development group of the Company. The changes to the condensed interim
financial statements at March 31, 1997 are summarized as follows:
Software Development Costs:
As Changed Original
--------- ---------
Balance at December 31, 1996 $ 809,824 $ 809,824
Additions during the first quarter 430,871 189,854
--------- ---------
1,240,695 999,678
Less amortization (257,120) (257,120)
Balance at March 31, 1997 983,575 $ 742,558
$ ========= =========
The following is a summary of items which have changed:
As Changed Original
--------- ---------
Assets
Software development costs, net $ 983,575 $ 742,558
Total other assets $ 1,002,446 $ 761,429
Total assets $ 3,809,152 $ 3,568,135
Stockholders' Equity
Accumulated deficit $(14,771,246) $(15,012,263)
Total stockholders' equity $ 2,111,836 $ 1,870,819
Total liabilities and stockholders' equity $ 3,809,152 $ 3,568,135
Statement of Operations
Product development expense $ - $ 241,017
Total costs and operating expenses $ 1,146,807 $ 1,387,824
Operating loss $ (873,333) $ (1,114,350)
Net loss $ (1,242,834) $ (1,483,851)
Loss applicable to
common shareholders $ (1,358,076) $ (1,599,093)
Loss per common share $ (0.25) $ (0.29)
Statement of Cash Flows
Net loss $ (1,242,834) $ (1,483,851)
Net cash used in operating activities $ (1,163,788) $ (1,404,805)
Increase in software development costs $ (430,871) $ (189,854)
Net cash used in investing activities $ (441,849) $ (200,832)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESUTLS OF OPERATIONS
General
The following discussion should be read in conjunction with the
financial statements and notes thereto found elsewhere herein. The
discussion assumes that the reader is familiar with or has access to the
Company's financial statements for the year ended December 31, 1996
and the notes thereto found in the Company's Form 10-K.
Results of Operations
Initial sales of INNOVUS Multimedia to small value added resellers (VARs) and
corporate information services departments began in late March, 1996.
In October, 1996 the Company announced an aggressive repricing and
repositioning of the software to appeal to the individual desktop PC user.
As part of the repositioning, the Company broadened its product line to
include two software tools (INNOVUS Multimedia v.2.21 Authoring and INNOVUS
Multimedia v.2.21 Presentations), eight application template packages for
specific applications, two computer based training (CBT) applications and two
business oriented media packages. The products are sold through retail
outlets such as Egghead Software and CompUSA. The products are being
wholesaled by Tech Data, the second largest distributor of computer
software and hardware in the world, and corporate resellers such as Software
Spectrum, Software House International, Stream and ASAP Software Express.
The Company's products are also offered through mail order catalog companies
such as MicroWarehouse, PC Connection and Tiger Direct. The Company has also
established a site on the World Wide Web for direct sales of the software.
During the three months ended March 31, 1997, the Company had net sales
of $273,474, compared to $56,462 for the comparable period of the prior
year. Approximately two-thirds of the 1997 sales were generated by
shrinkwrap software sales and the remainder from the sale of software
bundled with customized content. Sales in the 1996 period included limited
sales of shrinkwrap software to VARs, sales of the INNOVUS Multimedia
software tool combined with customized service or content production and
the balance was generated by training and related sales.
The costs of products and services sold in the three months ended March 31,
1997 were $93,578 or 34% of sales. During the comparable period of the prior
year, such costs were $19,023 or 34% of sales.
Selling and marketing expenses decreased to $569,329 in the three months
ended March 31, 1997 compared to $904,512 in 1996. The reduction in these
expenses was made in conjunction with the Company's overall restructuring
and downsizing. Although marketing expenses currently exceed revenue, the
Company believes that continued aggressive marketing efforts are necessary
as the Company promotes its positioning of INNOVUS Multimedia to the
individual desktop PC user.
Following completion of the commerical version of the software, product
development expenditures have continued for application templates to be
used with the software tools and preparations for future updates to the
software tools. For the quarter ended March 31, 1997, product development
costs were $ - (none), compared to $364,839 of such expenditures in the
comparable quarter of 1996 when the software was being completed for
commercial release. Software development costs of $430,871 are being
capitalized. See Note H of the notes to the financial statements.
In the three months ended March 31, 1997 and 1996, $257,120 and $76,698
of capitalized software development costs were amortized, respectively.
The Company anticipates continued development costs for future versions
of INNOVUS Multimedia, as well as the addition of application templates
and applications providing users with additional products enhancing
INNOVUS Multimedia.
General and administrative expenses were $226,780 for the quarter ended
March 31, 1997 compared to $206,778 in 1996. The resizing of the Company
in the fourth quarter of 1996 and the first quarter of 1997 reduced
general and administrative expenses from their prior levels.
The Company is deemed to have incurred $349,607 in interest expense during
the quarter ended March 31, 1997 in connection with the repricing of warrants
issued as part of bridge financing from affiliates and others. The
warrants are exercisable at the fair market value of the underlying common
stock at the date of re-pricing, but a value was assigned to the warrants
using a modified Black-Scholes method. Exclusive of the deemed expense
from the warrants, the Company incurred net interest expense for the
three months ended March 31, 1997 of $26,536. Net interest expense for
the comparable period in 1996 was $5,464.
The Company sustained a net loss of $1,242,834 for the first quarter of
1997 compared to a loss of $1,520,852 for the first quarter of 1996. On a
per share basis, the net loss per common share for the three months ended
March 31, 1997 was $0.25 compared to net loss per common share of $0.32
for the comparable period of the prior year. The weighted number of shares
used in calculating the loss per common share does not include the potential
issuance of common shares on conversion of outstanding preferred stock, as
such conversion are considered anti-dilutive.
The losses incurred in the current quarter cannot be sustained over an
extended period. Following the appointment of Terry Haas as President
and CEO during the third quarter, the Company re-positioned its software
in an attempt to increase sales and began reducing personnel and other
non-marketing expenses to levels more closely aligned with sales levels.
In 1997, the Company further reduced expenses by ceasing sales of low
margin services. While sales of shrinkwrap software continue to increase,
management cannot predict with certainty when or if, the Company can become
profitable.
Forward looking information
Statements regarding the Company's expectations as to future sales of
software, future capital resources and certain other statements presented
in this Form 10-Q constitute forward looking information within the meaning
of the Private Securities Litigation Reform Act of 1995. Although the
Company believes that its expectations are based on reasonable assumptions
within the bounds of its knowledge of its business and operations, there
can be no assurance that actual results will not differ materially from
expectations. In addition to matters affecting the Company's industry
generally, factors which could cause actual results to differ from
expectations include, but are not limited to (i) sales of the Company's
software may never rise to the level of profitability; (ii) due to the
rapidly changing and competitive nature of the industry, competitors
may introduce new products with significant competitive advantages over
the Company's products; and (iii) the Company may not have sufficient
resources, including any future financing it is able to obtain, to sustain
marketing and other operations.
Liquidity and Capital Resources
Following the commercial release of the software, the Company has been
dedicating all available funds to INNOVUS Multimedia marketing and support.
Marketing expenses have exceeded software revenue and the Company's liquid
resources have been depleted as a result. The Company has obtained funds to
support its operations from sales of its equity, including convertible
preferred stock. At March 31, 1997, the Company had total current assets
of $1,502,249 and working capital of $533,488. During the first quarter,
the Company incurred a net loss of $1,242,834 and had negative cash flow
from operations of $1,163,788. The Company anticipates that it will incur
additional negative operating cash flow until such time as software sales
increase substantially. The future rate of revenue generation cannot be
predicted with accuracy at this stage of the Company's growth.
The Company cannot sustain its current rate of negative cash flows from
operations and software development without additional sources of cash.
In the long term, needed cash must be generated by operations in order
for the Company to sustain itself. During the first quarter, the Company
raised $1,861,060 (after deduction of offering costs) primarily by issuing
preferred stock to institutional and accredited investors. The preferred
stock was issued in various series, the terms of each of which vary. All
series of preferred stock are preferred to the common stock in the event of
liquidation of the Company. Each series of preferred stock is entitled
to accrual of a dividend at the rate of 5% to 15% per annum, which is
generally payable in stock at the time of conversion. Each series
of preferred stock is convertible into common stock, either at a fixed
price or a price tied to the market value of the common stock.
As of May 2, 1996 the Company obtained a line of credit from a commercial
lending bank pursuant to a Loan and Security Agreement. At March 31, 1997,
the Company had $0 outstanding to the Bank under the Agreement. The
Agreement is now closed to new borrowings.
During 1996, the Company borrowed $1,470,300 from affiliates and other
individuals. The balance owing at March 31, 1997 was $370,000. These
amounts are secured by a second priority interest in substantially all
assets of the Company. The loans bear interest at 9.25% per annum and
are due July 30, 1997.
At March 31, 1997, the Company had long term liabilities of $671,564,
consisting primarily of the mortgage on the Company's building and notes
payable to related parties. The Company is considering offering the
building for sale and relocating to leased premises. Although the
Company will require additional funds to sustain operations, the Company
did not have any other significant capital commitments at March 31, 1997.
The Company is dedicating substantially all available funds, including
amounts it is able to borrow, to the software marketing and support. The
Company has limited available resources. The Company may require additional
funding to sustain operations until such time, if ever, as substantial
revenues are received from software sales.
The auditor's report on the Company's December 31, 1996 financial statements
notes that the Company's substantial operating losses raise substantial doubt
about the Company's ability to continue as a going concern. The Company
anticipates that it will be able to obtain sufficient financing from external
sources, combined with results from operations, to sustain operations. There
can be no assurance that additional financing will be available to the
Company or that operating results will improve as management currently
anticipates.
PART II
Item 2 - Changes in Securities
(b) The Company's Certificate of Incorporation authorizes 1,000,000
shares of Preferred Stock. The Board of Directors has the power to
divide the Preferred Stock into series and to designate the relative
rights and preferences of each series. The Board of Directors has
designated 70,000 shares of the Preferred Stock as the Series F
Convertible Preferred Stock and 12,000 shares as the Series G
Convertible Preferred Stock.
The Series F Preferred Stock entitles the holder to cumulative dividends at
the rate per share (as a percentage of the stated value of $50.00 per share)
equal to ten percent (10%) per annum for any shares converted during the
first year after issuance. The dividend on any Series F Preferred held
for at least one year without conversion is increased to 15% per annum for
the first year and reduced to 5% per annum thereafter. Dividends on the
Series F Preferred are payable in cash or common stock at the time of
conversion. The Series F Preferred is entitled to vote as a class with
the common stock, on an as-converted basis, except on matters for which
Delaware law requires class voting. Holders of shares of Series F Preferred
stock are also entitled to convert to common stock at a conversion price
equal to the $2.00 per share. If the market price of the common stock at
February 15, 1998 is less than $3.00 per share, the conversion price for
any Series F Preferred then outstanding will be adjusted so that each
Series F Preferred share (including accumulated dividends) will be
convertible into common stock having a market value of 150% of the original
purchase price of $50.00 per Series F Preferred share, subject to certain
limitations if the common stock has a market value below $1.00 per share.
The conversion rates are subject to additional adjustments in the event of
recapitalization, stock splits or similar events. The Company is entitled
to require a conversion or redemption of the Series F Preferred after
March 31, 1998. In the event of a liquidation, dissolution or winding-up
of the Company, the Series F Preferred has priority distribution rights
senior to the common stock, but junior to the Series C and D Preferred Stock.
The Series G Preferred Stock entitles the holder to cumulative dividends at
the rate per share (as a percentage of the stated value of $50.00 per share)
equal to ten percent (10%) per annum for any shares converted during the
first year after issuance. The dividend on any Series G Preferred held
for at least one year without conversion is increased to 15% per annum
for the first year and reduced to 5% per annum thereafter. Dividends on
the Series G Preferred are payable in cash or common stock at the time of
conversion. The Series G Preferred is not entitled to vote, except on
matters for which Delaware law requires class voting. Holders of shares of
Series G Preferred stock are also entitled to convert to common stock at a
conversion price equal to $2.25 per share. The conversion rates are subject
to additional adjustments in the event of recapitalization, stock splits or
similar events. The Company is entitled to require a conversion or
redemption of the Series G Preferred after March 31, 1998. In the event of a
liquidation, dissolution or winding-up of the Company, the Series F Preferred
has priority distribution rights senior to the common stock, but junior to the
Series C and D Preferred Stock.
(c) The following securities were issued by the Company during the
quarter ended March 31, 1997 without registration under the
Securities Act of 1933 (other than issuances pursuant to Regulation S):
(i) In February, 1997 the Company issued 40,000 shares of Series F
Preferred and warrants to purchase 200,000 shares of common stock.
The warrants entitle the holders to purchase common stock at $4.00
per share for a period of one year from the original issue date.
The terms of the Series F Preferred are described earlier in this
Item. The Company received cash consideration of $1,800,000 for
the Series F Preferred and warrants. The offering was made privately
to five accredited investors (three funds affiliated with the Free
Methodist Foundation, Ginsburg Surplus and Nation Wide Security
Inc.). The offering was exempt from registration pursuant to
Sections 4(2) and 4(6) of the Securities Act and Rule 506.
(ii) In February, 1997, the Company issued 12,000 shares of its
Series G Preferred for 12,000 previously outstanding shares of its
Series E Preferred. The terms of the Series G Preferred are
described above. The Company did not receive any consideration
for the Series G Preferred other than the Series E Preferred.
The offering was made to existing securities holders of the Company
without the payment of commissions and is therefore exempt from
registration pursuant to Section 3(a)(9) of the Act.
(iii) During the quarter, the Company issued 718,748 shares of common
stock upon conversion of 22,100 shares of Series C Preferred and
17,100 shares of Series D Preferred pursuant to the terms of such
series of preferred stock. The offering was made to existing
securities holders of the Company without the payment of commissions
and is therefore exempt from registration pursuant to Section 3(a)(9)
of the Act.
(iv) In January, 1997, the Company granted Terry Haas an option to
purchase up to 200,000 shares of common stock at $2.50 per share.
The consideration for such issuance was Mr. Haas' continued
employment. The offering was made privately to a single accredited
investor and was therefore exempt from registration pursuant to
Sections 4(2) and 4(6) of the Securities Act and Rule 506.
(v) During the quarter, the Company issued 49,527 shares of common
stock on exercise of previously outstanding employee stock options.
Total consideration received for the exercises was $25,160. The
offering was made to a limited number of sophisticated persons
without the payment of commissions and is therefore exempt from
registration pursuant to Section 4(2) of the Act.
Item 6 - Exhibits and Reports on Form 8-K
The Company filed a report on Form 8-K dated January 13, 1997
disclosing David Broadbent's resignation as a director.
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
INNOVUS CORPORATION
Date: May 14, 1997 By /x/
Terry Haas
Chief Executive Officer
By /x/
David Mock
Chief Financial Officer
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This schedule contains summary financial information extracted from the
unaudited financial statements as of March 31, 1997 and is qualified in its
entirety by reference to such financial statements.
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
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4,049,167
<COMMON> 12,844,820
<OTHER-SE> (10,905)
<TOTAL-LIABILITY-AND-EQUITY> 3,809,152
<SALES> 273,474
<TOTAL-REVENUES> 273,474
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